Correlation Between Beijing Originwater and Shuhua Sports
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By analyzing existing cross correlation between Beijing Originwater Technology and Shuhua Sports Co, you can compare the effects of market volatilities on Beijing Originwater and Shuhua Sports and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beijing Originwater with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Originwater and Shuhua Sports.
Diversification Opportunities for Beijing Originwater and Shuhua Sports
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Shuhua is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Originwater Technology and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Beijing Originwater is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beijing Originwater Technology are associated (or correlated) with Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Beijing Originwater i.e., Beijing Originwater and Shuhua Sports go up and down completely randomly.
Pair Corralation between Beijing Originwater and Shuhua Sports
Assuming the 90 days trading horizon Beijing Originwater Technology is expected to generate 1.64 times more return on investment than Shuhua Sports. However, Beijing Originwater is 1.64 times more volatile than Shuhua Sports Co. It trades about 0.07 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.02 per unit of risk. If you would invest 460.00 in Beijing Originwater Technology on September 3, 2024 and sell it today you would earn a total of 126.00 from holding Beijing Originwater Technology or generate 27.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Originwater Technology vs. Shuhua Sports Co
Performance |
| Timeline |
| Beijing Originwater |
| Shuhua Sports |
Beijing Originwater and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Originwater and Shuhua Sports
The main advantage of trading using opposite Beijing Originwater and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Originwater position performs unexpectedly, Shuhua Sports can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Beijing Originwater vs. Shuhua Sports Co | Beijing Originwater vs. Dareway Software Co | Beijing Originwater vs. Hangzhou Pinming Software | Beijing Originwater vs. Inspur Software Co |
| Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. China Life Insurance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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